The economic calendar in the Asian Pacific session is light once again.
- Fedspeak will have Fed's Bostic speaking at 6 PM. On Friday, in interviews with Bloomberg TV and CNBC, Bostic stated that he estimates the long-run Federal Reserve rate at 3%. He emphasized that the Fed's next steps will be data-dependent, noting that inflation has decreased faster than expected, though underlying inflation remains concerning. Bostic highlighted solid business conditions, allowing the Fed to be patient as it seeks a calm and orderly return to a normalized policy stance. He mentioned that while the economy is in a relatively good position, the Fed must remain cautious, especially considering labor market dynamics. Although Bostic had previously indicated only one rate cut on the dot plot, he now suggests that it may be appropriate to consider easing sooner if data continues to show positive trends.
- Later at 9:00 PM ET, the ANZ Business Confidence index in New Zealand will be released. Last month the index came in at 27.1
- At 9:30 PM, the Australia Private Captial expenditures for the 2Q are expected to rise 1.0% vs 1.0% pior. Buildig Capex came in at 00.9% prior and Plant/Machinery Capex came in at 3.3%
- At 1AM ET, Japan Consumer confidence will be released with expectations. The prior month came in at 36.7.
Also after the close Nvidia will report earning. Adam does a great preview here.
A summary:
Q2 Expectations:
- EPS: $0.64 (adjusted) versus $0.27 last year
- Revenue: $28.5 billion versus $13.51 billion last year
AI Boom: Nvidia is a major beneficiary, with its market value expanding over nine times since end-2022.
Revenue Growth: Expected to post fourth consecutive quarter of triple-digit revenue growth; however, growth may slow over the next seven quarters due to tougher year-over-year comparisons.
October-Quarter Forecast:
- EPS: $0.71
- Revenue: $31.7 billion (about 77% annual growth)
- The gross margin next quarter is expected at 75.5%.
Investor Focus:
- Sustained AI demand indications
- Launch timeline for next-gen Blackwell AI chips, amid potential delays
- Potential impact of Blackwell delay could shift revenue to future quarters, boosting Hopper H200 chip sales.
Also after the close CrowdStrike and Salesforce will announce earnings:
Crowdstrike:
- EPS estimate $0.97 versus $0.74 last year
- Revenues: 958.3M versus 731.6 million last year
Salesforce:
- EPS Est.: $2.35 versus $1.89 last year
- Revenues 9.126B vs 8.603 billion last year
In the European session:
- Germany will release their monthly CPI data with estimates of 0.1% versus 0.3% last month. The HI CP is expected to be unchanged versus 0.5% last month
In the US a session tomorrow:
- US GDP second estimate for Q2 expected at 2.8% versus 2.8% in the advanced report (8:30 AM ET). The core PCE price estimate is expected to remain unchanged at 2.9% versus the advanced
- US initial jobless claims (8:30 AM ET) are expected at 232K versus 232K last week. Continuing claims are expected at 1.870M versus 1.863M last week
- US advance goods trade balance (8:30 AM ET for July will be released. Last month $-96.56 billion
- US wholesale inventories (8:30 AM ET) are expected 0.3% versus 0.2% last month
- Canada current account is expected at C$-5.85 billion versus C$-5.37B last month
- US pending home sales (10 AM ET) are expected to rise by 0.4% versus 4.8% last month
The US treasury will auction off seven year notes at 1 PM ET